1/4/23, 12:16 PM Credit Note and Debit Note under GST - Masters India

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Note and Debit Note under GST

Matre at December 30, 2022

of Credit Note
dit note in GST. For Registered Suppliers at the time of supply of goods and services it is mandatory to issue a
this article we’ll explain CDNR full form in GST, CDNR meaning in GST, What is CDNR in GST etc. In this article
about Debit Note and Credit Note in GST, full form of CDNR in GST, debit note and credit note under GST, and

e can be certain situation under Trade and business where original invoice which is issued at the time of sale
mended. Let’s have a look at credit and debit note in GST

iginal invoice amount needs to reduced

nal Invoice amount needs to increased

s Under Which Original Invoice Amount Needs to Reduced

plier has wrongly declared a value that is more than the actual value of the goods or services provided.
plier has wrongly declared a higher tax rate than what is applicable for the kind of goods or services or both
.
ntity received by the recipient is less than what has been declared in the tax invoice.
lity of the goods or services or both supplied is not to the satisfaction of the recipient thereby necessitating a
r total reimbursement on the invoice value.
er similar reasons.

ction in the original invoice amount can be made by issuing credit note and debit note in GST

a Credit Note in GST?

nvoice has been issued for the supply of any goods or services and the taxable value or tax charged in that tax
nd to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned
nt i.e. Sales Return, or where goods or services or both supplied are found to be deficient or not as per the
of the buyer, the registered person, who has supplied such goods or services or both, may issue to the
er a note that is called as a credit note in GST.

s Under Which Original Invoice Amount Needs to Increased

plier has wrongly declared a value that is less than the actual value of the goods or services or both provided.
plier has wrongly declared a lower tax rate than what is applicable for the kind of goods or services or both
.
ntity received by the recipient is more than what has been declared in the tax invoice.
er similar reasons for which suppliers have to issue credit note under GST.
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ease in the original invoice amount can be made by issuing Debit Note. callback

a Debit Note? Business Messenger by

voice has been issued for supply of any goods or services or both and the taxable value or tax charged in that
found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has
goods or services or both, shall issue to the recipient a note which is called Debit Note in GST.

f Credit Note and Debit Note

1) Name
ecific format of Credit Note and Debit Note but there is some mandatory field which required on credit note and
ich is as follows: 2) Mob
3) Official Email
ddress, and GSTIN of supplier 4) Name of Organization
5) Requirement
of document
number not exceeding 16 digits
ssue
ddress, GSTIN of Buyer if registered Enter your message
nd address of the recipient and the address of delivery, along with the name of State and its code, if such
t is un-registered;

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 1/4/23, 12:16 PM Credit Note and Debit Note under GST - Masters India

umber of original Invoice

taxable supply of goods or services,Products
rate of tax andTools
the amount Resources
of the tax credited Company Support
to the recipient; and Request Callback
e or digital signature of the supplier or his authorized representative.

mit of Issuing Debit/Credit Note

is issuing credit note/Debit Note will declare the details of credit note/Debit Note issued under GSTR-1 of that
r but not later than September following the end of the financial year in which such supply was made, or the date
of the relevant annual return, whichever is earlier. But if credit note/debit note is issued after September or filings
rn then it will be invalid.

g Credit Note Supplier GST Liability Will Reduce

f Sales was Rs. 10,000/- and GST charged @ 18% so GST liability for that month was Rs. 1800/- and later Credit
000/- was issued so GST needs to pay only on Rs. 5,000 (10,000-5,000) i.e. Rs. 900/- But, GST liability will reduce
0/- to Rs. 900/- if – Amount is matched with corresponding Reduction in Input Tax Credit made by Buyer in his
mount is not matched with corresponding Buyer’s GSTR-2 then it shall be communicated to both Buyer and

g Debit Note Supplier GST Liability Will Increase

of a debit note or a supplementary invoice creates additional tax liability. The treatment of a debit note or a
y invoice would be identical to the treatment of a tax invoice as far as returns and payment are concerned.

of credit note and Debit note shall be retained at least upto 72 months from the due date of furnishing of annual
year pertaining to such accounts and records. Where such accounts and documents are maintained manually, it
t at every related place of business mentioned in the certificate of registration and shall be accessible at every
of business where such accounts and documents are maintained digitally.

on

te is therefore a convenient and legal method by which the value of the goods or services in the original tax
e amended or revised. The issuance of the credit note will easily allow the supplier to decrease his tax liability in
hout requiring him to undertake any tedious process of refunds.

e or a supplementary invoice is therefore a convenient and legal method by which the value of the goods or
e original tax invoice can be enhanced. The issuance of the debit note will easily allow the supplier to pay his
liability in his returns without requiring him to undertake any other tedious process.

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Note and Debit Note under GST - Explained | Masters India

onrel 1) Name
ago
2) Mob
y the efforts you have put in this, thankyou for all the great articles. 3) Official Email
4) Name of Organization
5) Requirement

ago

apply GST to Debit note or Credit note must I follow back the original invoice GST rate? COs the DN /CN could be required many year later as the GST rate has

h
ago

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1/4/23, 12:16 PM Credit Note and Debit Note under GST - Masters India
ssue March 2017 bill`s Debit note in Next F.y.? will it be valid?
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